David Stanton (Cork East, Fine Gael)
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Question 154: To ask the Minister for Finance his position regarding persons in mortgage arrears; the details of the instruction, if any, issued to banks and other financial institutions by him or the Financial Regulator regarding the need to negotiate with clients who are unable to meet their mortgage repayments; and if he will make a statement on the matter. [5579/12]

Michael Noonan (Limerick City, Fine Gael)
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The Government is acutely aware of the increasing financial stress that some households are facing arising from difficulty in meeting their mortgage commitments. The Government, therefore, established an Inter-Departmental Working Group on Mortgage Arrears to consider what additional measures could be introduced to assist people experiencing mortgage difficulty. The Group's report was published last October and the implementation of its recommendations is a key part of the Government's ongoing efforts to tackle mortgage difficulty.

With regard to mortgage holders in arrears or in danger of going into financial difficulty, the Central Bank revised Code of Conduct on Mortgage Arrears (CCMA) offers increased protections. The revised CCMA, which came into effect from 1 January 2011, builds on the provisions of the previous version and includes more detailed requirements, including the establishment of a formal Mortgage Arrears Resolution Process (MARP). In that regard, the Central Bank has also published a guide for consumers on mortgage arrears 'Mortgage Arrears – A Consumer Guide to Dealing with your Lender' and this is available on the Central Bank website.

More recently, the Central Bank has also required licensed mortgage lenders to develop comprehensive strategies and implementation plans to deal with their individual mortgage arrears situations. The Central Bank is currently reviewing these strategies and plans to ensure that they are addressing the problem and that mortgage lenders are looking at appropriate longer term solutions, such as those recommended in the Inter-Departmental Mortgage Arrears Working Group report and other options that banks may develop themselves, for their customers who may have unsustainable mortgages. The Central Bank will continue to engage with lenders on the further development and implementation of these strategies and plans.